Northern Trust to buy UBS fund administration arm

UBS Group and Northern Trust Corporation have announced that UBS AG has entered into an agreement for Northern Trust to acquire UBS Asset Management's fund administration servicing units in Luxembourg and Switzerland.

The acquisition will enable Northern Trust to expand its presence in Luxembourg and gain local fund administration capabilities in Switzerland, becoming a leading administrator by assets in the market.

The transaction is expected to close in the second half of 2017, subject to applicable regulatory and fund board approvals and other customary closing conditions.

Upon completion, Northern Trust says it will become the fund administration services provider for funds with approximately CHF 420 bn in assets, including UBS Asset Management's traditional funds currently serviced by UBS Fund Management (Switzerland) or UBS Fund Services (Luxembourg).

UBS clients will continue to be supported by their current relationship management teams following the transaction and UBS Asset Management will continue to offer management company, white labelling and representative services to its clients.